The last decade has witnessed an explosion in the number of regional trade agreements (RTAs). There seems to be a general if ill-defined belief on the part of many policy-makers, and among a number of academics as well, that there is more to a RTA than the traditional gains from trade. This...

Technical indicators are widely used by market participants to identify trends in asset prices and in trading volumes. However, it is unclear how to reconcile this approach with a portfolio selection policy that guide investment decisions in many assets at the same time. We bridge the gap...

We study signal-dependent experimentation in the presence of accumulation and show that the passive-learner's action surprisingly coincides with the experimentor's when the unknown term is the one determining the decay rate of the stock, while they differ when the parameter being learned is the...

This paper provides a noncooperative approach to core stability in an economy with incomplete information. The analysis covers general exchange economies, although our tightest results hold when effective coalitions consist of at most two players, as in matching. We study the perfect Bayesian...

We present a novel framework for analyzing the optimal asset and signal combination problem. We reformulate the original problem of portfolio selection from a set of correlated assets and signals into one of selecting from a set of uncorrelated trading strategies through the lens of Canonical...

A firm, privately informed about product quality, chooses a public test. Tests vary in expertise, and return a binary result. A competitive market generates interim beliefs based on expertise and posteriors based on test results. We show that standard single-crossing does not hold. Higher...

There has been a substantial body of work modeling the co-movement of employment, vacancies, and output over the business cycle. This paper builds on this literature, and informed by empirical investigation, models worker and firm search and hiring behavior in a manner consistent with recent...

Short-time work - a wage subsidy conditional on hour reductions - has become an important tool of labor market policy in many European countries. As the scope of these policies expanded, concerns about side effects due to adverse selection increased. We develop a model of job retention policies...